WALL, N.J.--(BUSINESS WIRE)--New Jersey Resources (NYSE:NJR) today announced its subsidiary, Adelphia Gateway, LLC, has entered into an agreement with Talen Generation, LLC (Talen Generation), a subsidiary of Talen Energy Corporation, to purchase all of Talen Generation’s membership interests in Interstate Energy Company LLC, which owns and operates an existing 84-mile pipeline in southeastern Pennsylvania, for an estimated $166 million, plus additional contingent payments of up to $23 million based on certain specified conditions. The transaction is expected to close following receipt of all necessary permits and regulatory actions, including those from the Federal Energy Regulatory Commission and the Pennsylvania Public Utility Commission.
NJR’s Adelphia Gateway project will repurpose the southern 50-mile portion of the pipeline to flow natural gas and provide customers in the greater Philadelphia region with a needed, new source of clean, safe, low-cost supply. This innovative approach utilizes existing infrastructure to meet market demand with minimal new construction or impact to the environment. Once converted, the pipeline will be able to transport an incremental 250,000 dekatherms per day, approximately 91 million dekatherms per year, of natural gas to the greater Philadelphia market.
“With the growing demand for clean, low-cost natural gas, Adelphia Gateway will play a pivotal role in delivering much needed supply to customers in the Philadelphia market, as well as providing value for our company and shareowners,” said Steve Westhoven, senior vice president of NJR Midstream, a subsidiary of New Jersey Resources. “Today, the Philadelphia market is constrained with limited access to affordable energy sources. With the Adelphia Gateway project, we look forward to applying our market expertise to serve customers and support economic development opportunities in the region.”
The northern 34 miles of the pipeline, extending from western Bucks County to Northampton County, were converted to deliver natural gas in 1996. Originally constructed in the 1970s to transport oil, the 18-inch diameter pipeline runs through Pennsylvania from Marcus Hook, just south of Philadelphia, north to Martins Creek, Pennsylvania.
For more information on the Adelphia Gateway project, visit AdelphiaGateway.com.
About New Jersey Resources
New Jersey Resources (NYSE:NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:
- New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains over 7,300 miles of natural gas transportation and distribution infrastructure to serve over half a million customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex and Burlington counties.
- NJR Clean Energy Ventures invests in, owns and operates solar and onshore wind projects with a total capacity of more than 300 megawatts, providing residential and commercial customers with low-carbon solutions.
- NJR Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.
- NJR Midstream serves customers from local distributors and producers to electric generators and wholesale marketers through its 50 percent equity ownership in the Steckman Ridge natural gas storage facility and its stake in Dominion Midstream Partners, L.P., as well as its 20 percent equity interest in the PennEast Pipeline Project.
- NJR Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.
NJR and its more than 1,000 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project®and The Sunlight Advantage®.